Jean Ross at the California Budget Project comments on a study by her group’s sister organization in Washington that shows rising income inequality in America. The same has been true in California, Ross says, citing Franchise Tax Board numbers for 1993-2008. The share of income going to the top fifth of personal income taxpayers has increased while that going to the bottom 80 percent has declined.
Data from the Franchise Tax Board show that the share of total adjusted gross income – income reported for tax purposes, which includes investment income such as capital gains – going to the top fifth of California personal income taxpayers has increased, while that going to the bottom 80 percent of the income distribution declined between 1993 and 2008. Interestingly, the largest drop occurred among middle to upper-middle income taxpayers – those between the 40th and 80th percentiles of the income distribution. Similarly, the average growth for individual taxpayers was the largest at the top of income distribution, with little or no growth, on average, for most state taxpayers after adjusting for inflation.
See Ross’s blog post here.